TECH NEWS – The US Department of Justice (DoJ) has reportedly subpoenaed Nvidia, causing quite a stir in the stock market recently, but the company is denying it…

All Nvidia will say is that they are happy to answer any questions lawmakers may have about their business. If this is indeed the case, why did Nvidia not respond to the rumors a day earlier? The GPU maker lost about $280 billion of its market capitalization on Tuesday, and most of that was pulled out of the company by investors who may have known behind the scenes that all might not be well around “the greens.”

$NVDA Nvidia Says 'We Have Not Been Subpoenaed' By Dept. Of Justice pic.twitter.com/m1bG7Rs7S0

— Benzinga (@Benzinga) September 4, 2024

According to industry commentators, Nvidia’s fall was merely a side effect of the economy heading into a bad patch. According to Patrick Moorhead, CEO of Moor Insights, organized investors will do nothing until the DoJ makes some sort of ruling on Nvidia. In any case, Nvidia’s lethargic attitude has raised many questions. Perhaps they have not yet been physically subpoenaed?

According to a Bloomberg report, DOJ investigators are looking into Nvidia’s alleged practice of giving pricing and/or shipping preferences to customers who use only its AI chips or install the company’s full systems. Jensen Huang, Nvidia’s CEO, has previously stated that the company gives preference to customers who install its products in designated, ready-to-use data centers, presumably to prevent stock-outs. The DoJ is also investigating Nvidia’s acquisition of RunAI, a company that makes AI computing software. DoJ officials say this acquisition could make it harder for customers to switch from Nvidia’s offerings.

Nvidia is trying to put everything in one system, so it would offer not only dedicated AI accelerators, but also software-based solutions for training models, as well as data center design optimization services, which is in line with Huang’s “AI factory” vision. Just don’t end up with a fine.

Source: WCCFTech

Here is my 7-and-a-half minutes talking about $NVDA and the @TheJusticeDept. A few points:
1/It's not illegal to hold a monopoly, it's to use that power to harm consumers. NVIDIA, holding 90+% of the datacenter GPU share in the most important AI sector, sends off red flares. I'm… https://t.co/ZsqTNJYAQF

— Patrick Moorhead (@PatrickMoorhead) September 4, 2024